Should You Compete on Price or Customer Experience?

16 Feb

Create the Ultimate Customer Experience

Let me keep this simple: If you compete on price, your business will die a slow, painful death.  Price is the easiest marketing strategy for competitors to imitate. We see companies everywhere competing solely on price–just look at the airline and pizza industry.  Competing on price has several negative effects on your business, including:

1) Attracts price shoppers who have absolutely ZERO loyalty to you and your business.  The only way you to get them to buy again is to slash your prices.

2) Squeezes your profit margins. You have to compete by selling more volume to make up for the loss in margin–bad idea, unless you’re Wal-Mart.

A low price strategy is often the death of small businesses. As a small business owner, you have a unique opportunity to provide an unmatched customer experience.  Although it’s natural to assume every consumer buys strictly on price, studies indicate only between 5 percent and 10 percent of customers shop based on price.

Your strategy should focus on creating an unmatched customer experience for prospects and customers that interact with your company. How can you create a systematic experience that leaves people raving about your company? If you create that WOW experience, you will have loyal, raving, repeat customers who are willing to pay a premium for your products and services. More profits for your business equals more resources for you to expand and squash your competition.

Good Luck!

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